Share this article
Cardano-Based Overcollateralized Stablecoin Djed to Launch Next Week
The stablecoin can be minted by ADA holders and is widely expected to be integrated to several Cardano dapps upon launch.
Updated Jan 25, 2023, 7:29 p.m. Published Jan 25, 2023, 8:47 a.m.
Cardano-based decentralized stablecoin djed is on track for a launch next week, one of the developers behind the token said Tuesday.
The highly anticipated djed stablecoin has been jointly developed by Cardano code maintainer IOG and Coti, a layer 1 blockchain. Djed will be backed by other tokens and requires more than 400% in collateral value to be posted before it is issued to a user.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
This overcollateralized mechanism would allow djed's value to hold stably during market stress and prevent a repeat of terraUSD, the infamous stablecoin linked to luna, which fell over 99% in May.
Djed is expected to go live on over 40 Cardano-based decentralized finance applications (dapps) on launch, as per a November report on The Block. Developers have simultaneously developed DjedPay, a payments application that uses djed, that would allow users to transfer the tokens to merchants and businesses.
The Cardano dapp ecosystem locks up over $72 million worth of tokens as of Wednesday, DefiLlama data shows.
Meanwhile, Coti developers said in the Tuesday post that holders of SHEN, a reserve token meant to support djed's stability, would receive extra rewards when holders of Cardano's ADA cryptocurrency stake their coins to mint djed stablecoins.
"As part of our effort to stake the ADA that is deposited to the djed smart contract and generate extra rewards for SHEN holders, we are developing a snapshot mechanism and UI that will be added to djed.xyz, where SHEN holders will be able to track these extra rewards," developers said.
ADA's price is down 5.5% in the past 24 hours, in line with a broader market drop.
More For You
L1 tokens broadly underperformed in 2025 despite a backdrop of regulatory and institutional wins. Explore the key trends defining ten major blockchains below.
What to know:
2025 was defined by a stark divergence: structural progress collided with stagnant price action. Institutional milestones were reached and TVL increased across most major ecosystems, yet the majority of large-cap Layer-1 tokens finished the year with negative or flat returns.
This report analyzes the structural decoupling between network usage and token performance. We examine 10 major blockchain ecosystems, exploring protocol versus application revenues, key ecosystem narratives, mechanics driving institutional adoption, and the trends to watch as we head into 2026.
More For You
Bitcoin bulls eye possible tailwind as U.S. dollar index continues to leg lower
Metals and other hard assets continue their surge to new records as the greenback stumbles, but crypto has not responded.
What to know:
- The U.S. dollar is trading near a three-month low and just above a major support line stretching back to the 2008 financial crisis.
- Precious metals and other hard assets have responded as expected to the greenback's weakness — rallying strongly — but bitcoin and crypto have remained under pressure.
Top Stories
